Mohegan Sun reaches surrounding community agreement with Saugus

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North of Boston

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Posted Jun. 19, 2014 at 8:00 AM

Posted Jun. 19, 2014 at 8:00 AM

SAUGUS

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Mohegan Sun submitted the following press release

Mohegan Sun announced the completion of terms for a surrounding community agreement with the town of Saugus, marking its 11th surrounding community agreement and another critical step in pursuit of a license to develop a world-class casino resort in Revere.

To date, Mohegan Sun has agreed to make upwards of $37 million in annual payments to its host community of Revere and surrounding cities and towns and more than $10 million in upfront payments.

The agreement will provide significant economic and community benefits along with an annual local impact payment of $850,000 to the town of Saugus once Mohegan Sun Massachusetts is open. The agreement also includes promotion of employment opportunities for Saugus residents, joint marketing opportunities for entertainment venues, hotels and restaurants in the town, and a commitment to hold a series of job fair and vendor forums for area businesses and residents.

"Todayís agreement marks another milestone in our efforts to create an amazing destination with Mohegan Sun Massachusetts," said Mitchell Etess, CEO of the Mohegan Tribal Gaming Authority. "Our ability to successfully reach agreements with 11 surrounding communities illustrates the extraordinary and unique benefits that this project will bring to the region. Our business model was developed specifically to drive the economic opportunities and benefits created by Mohegan Sun directly to the shops, restaurants and doorsteps of local businesses."

Mohegan Sun has embraced the spirit and letter of the Massachusetts gaming legislation in partnering with neighboring communities, organizations, businesses and venues to generate new economic development and tourism opportunities. This new agreement ensures that small businesses in Saugus will have access to millions of dollars in annual spending by Mohegan Sun Massachusetts and that residents will be given job and career training opportunities at the resort casino.

Mohegan Sun Massachusetts expects to spend about $50 million annually on goods and services from businesses located within a 15-mile radius of Revere once the resort is fully operating. Additionally, the Momentum Points Partnership program will create an estimated $50 million in direct spending at businesses throughout the region.

"Saugus is pleased to have entered into an agreement with Mohegan Sun," said Town Manager Scott Crabtree. "Working in collaboration with Board of Selectmen Chairman Ellen Faiella and Selectman Paul Allan, the town, through this agreement, was able to zealously advocate for the needs of the community and residents of Saugus. The benefits of this agreement for the town, including not only the annual payment, but also the business partnerships and job creation that will result from this project, will be a critical economic engine for Saugus."

Mohegan Sun Massachusetts also expects to create 4,000 jobs and has committed to hiring 75 percent of its workforce within the same 15-mile radius. Also included as part of the agreed-upon terms are strong commitments to regional economic development ó such as the cross marketing of cultural institutions, hotels, and other organizations in Saugus, and providing local businesses with access to vendor opportunities and Mohegan Sunís industry leading players club points program. Already, 300 businesses have registered as part of the projectís Momentum Points Partnership program.

Page 2 of 2 - In addition to the town of Saugus, Mohegan Sun has also signed surrounding community agreements with Cambridge, Chelsea, Everett, Lynn, Malden, Medford, Melrose, Salem, Somerville and Winthrop.

The agreements are the result of comprehensive discussions over benefits to these communities to be provided by Mohegan Sun should it be awarded a license to develop a $1.3 billion resort casino in Revere.

Mohegan Sun Massachusetts will be a $1.3 billion resort casino with two hotels and world-class dining, shopping and entertainment amenities located on 42 acres in Revere. The resort casino will also help preserve 800 jobs in the historic thoroughbred racing industry at Suffolk Downs.